When comparing the ﬁnancial statements of one ﬁrm with those of another ﬁrm, a problem that may
be encountered is that the two ﬁrms may be seasonal in nature and have different ﬁscal year ends.

Question

Quizplus · Accepted Answer

If the two firms have different fiscal year ends, it may be difficult to compare their financial statements as it could result in different time periods being compared, including different seasonal patterns.

When Comparing the ﬁNancial Statements of One ﬁRm with Those